Four new commercial courts to be opened next week

JAKARTA (JP): Minister of Law and Legislation Yusril Ihza Mahendra said on Tuesday that four new commercial courts would be opened next Monday in Surabaya, Semarang, Medan and Makassar to help accelerate the resolution of the massive corporate debt overhang.

"I will officially open the new courts on May 8," he told reporters following a meeting with senior economics ministers.

The meeting was held at the office of the coordinating minister for economy, finance and industry Kwik Kian Gie to review the country's progress with its economic reform measures as agreed in January with the IMF.

Kwik was unable to chair the meeting as he almost collapsed from exhaustion at a meeting earlier in the day.

He was taken to the Medistra hospital for emergency treatment. The meeting was later chaired by Minister of Finance Bambang Sudibyo.

Indonesia has so far set up only one commercial court -- also known as a bankruptcy court -- in Jakarta since the bankruptcy law became effective in October 1998.

Yusril also said a presidential decree was expected to be issued soon on the appointment of nine ad hoc judges.

He added that the list of the nine ad hoc judges had been sent to President Abdurrahman Wahid.

Yusril did not mention the name of the candidates of the ad hoc judges, but earlier reports said they included prominent lawyer Todung Mulya Lubis, chairman of the Agency for National Legal Development HAS Natabaya, senior advisor to the Minister of Law and Legislation Ratnawati and lawyer Teguh Samudera.

Teguh was reported to have been allegedly involved in a Rp 2 billion court bribery involving a civil case in 1998.

Teguh has denied the allegations.

Asked to comment on the allegations on Teguh, Yusril said that the ad hoc judges were temporary judges who would only be involved in deciding upon a case if either creditors or debtors asked for their involvement.

He said that if none of the court judges asked for Teguh's assistance, the lawyer would not be assigned to a case.

The ad hoc judges are assigned to handle certain cases involving complex business transactions that may require various areas of legal jurisprudence in the commercial court.

The Indonesian Bank Restructuring Agency (IBRA) has demanded the assignment of ad hoc judges to handle its bankruptcy petitions against several recalcitrant debtors. The agency has became frustrated by what it considers 'strange' court decisions that have gone against its lawsuits.

IBRA is tasked with restructuring and recovering over Rp 200 trillion worth of bank nonperforming loans.

Meanwhile, Attorney General Marzuki Darusman said the government would soon set up a new commission to handle recalcitrant IBRA debtors who had failed to negotiate in good faith.

He said the commission would propose that the list of IBRA's uncooperative debtors be sent to the Attorney General's Office to be filed for bankruptcy.

Marzuki added that the commission would recommend that debtors who had failed to conclude restructuring agreements after 90 days of negotiations with IBRA be brought to the commercial court for bankruptcy.

"We need an effective mechanism to handle uncooperative debtors," Marzuki said following the meeting with economics ministers.

He added that the commission would include representatives from IBRA, the police, the finance ministry, the office of the coordinating minister for economy, finance and industry and the office of the attorney general.

He said the House of Representatives had been consulted with over the planned commission.

"We expect a presidential decree on the establishment of the commission to be issued shortly," Marzuki said.(rei)